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Countdown to College Student Financial Aid

Countdown to College Student Financial Aid. First Step. Scholarship Web Site. www.ufo.psu.edu. Great Tips. Private Scholarships. Be prepared . Start early . Don't pay . Be persistent. Good Site - College Board.

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Countdown to College Student Financial Aid

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  1. Countdown to College Student Financial Aid

  2. First Step

  3. Scholarship Web Site www.ufo.psu.edu

  4. Great Tips

  5. Private Scholarships • Be prepared. • Start early. • Don't pay. • Be persistent. Good Site - College Board http://www.psu.edu/studentaid/scholarships/priv_searches.shtml?reload

  6. Begin To Gather Income Data • Copy of Parent & Student 2010 Federal Tax Return • Investment Information • All Untaxed Income • Documents • Find Social Security Cards

  7. Scholarship Information Session Wednesday November 7th from 6:00 p.m. to 7:30 p.m. at the Penn State Greater Allegheny campus. All are welcome. Learn how to write scholarship essays & conduct internet searches for private scholarships.

  8. Begin To Gather Income Data • Copy of Parent & Student 2011 Federal Tax Return • Investment Information • All Untaxed Income • Documents • Find Social Security Cards

  9. Begin To Gather Income Data • Remember that the FAFSA will eventually need to be updated with the • latest tax return - 2012 • For academic year 2013-14 • the base tax year is 2012

  10. Main Document FAFSA Free Application For Federal Student Aid www.FAFSA.gov

  11. What Does The FAFSA Do • Application For All Federal & State Aid • Determines Expected Family Contribution (EFC) • Uses Federal Formula

  12. What Does The FAFSA Do • Stays The Same Regardless Of College • Two Components • Parent Contribution • Student Contribution • Establishes “Financial Need”

  13. What Makes COA? • Tuition $12,242 (Billable) • Fees $860 (Billable) • Room & Board $9,100 (Billable) • Books $1,920 (Non-Billable) • Transportation $828 (Non-Billable) • Miscellaneous $3,222 (Non-Billable) • _____________________________________ • Total $28,172 / year

  14. What Is Financial Need? Cost of Attendance (Varies College to College) –Expected Family Contribution (EFC) _______________________________________________________________________ = Financial Need

  15. What Is Financial Need? COA ($28,172) –EFC ($3,000) _______________________________________________________________________ = Need ($25,172)

  16. What Is Financial Need? COA ($9,000) –EFC ($3,000) _______________________________________________________________________ = Need ($6,000)

  17. Categories Of Financial Aid • Need Based Aid • Federal Pell Grant • PHEAA State Grant • Supplemental Educational Opportunity Grant (SEOG) • College Work Study • Perkins Loan • Stafford Subsidized Loan (Student Fr max = $3500)

  18. Categories Of Financial Aid • Non-Need Based Aid • Stafford Un-Subsidized Loan (Student Fr. Max = $2000) • PLUS Loan (Parent)

  19. Stafford Loans • Stafford Subsidized Loan • Borrower Is The Student • Max Loan Is $3500/year • Principal & Interest Deferred – Until Graduation • Interest Rate is 3.4%

  20. Stafford Loans • Stafford Un-Subsidized Loan • Borrower Is The Student • Max Loan Is $2000/year • Principal Deferred – Until Graduation • Interest Paid While In School • Can Be Deferred (Interest Added To Principal) • Interest Rate is 6.8%

  21. Stafford Loans • Total Sub & Un-sub Never Be Greater Than $5500/year. • Stafford Sub Not Awarded Can Become Un-Sub Loan • Examples Of Awards Per Year • $3500 Sub / $2000 Un-sub • $0 Sub / $5500 Un-sub • $1000 Sub / $4500 Un-Sub

  22. Financial Aid Packaging • Fall Spring Total • Pell Grant $1300 $1300 $2600 • PHEAA Grant $1989 $1989 $3978 • SEOG $600 $600 $1200 • Outside Scholarship $1000 $1000 $2000 • Stafford Subsidized $1750 $1750 $3500 • Stafford Un-Subsidized $1000 $1000 $2000 • _________________________________________________ • Total Aid = $7639 $7639 $15,278

  23. Your Bill (Charges) • Tuition $6,121 (Billable) • Fees $430 (Billable) • Room & Board $4,550 (Billable) • _____________________________________ • Total $11,101 / semester

  24. What You Owe • Total • Billable Cost = $11,101/year • Total Aid = $7,639/year • _______________________________ • What You Owe = $3,462 / semester

  25. Next - PLUS Loan • Parent Is Borrower • Fixed Rate Of 7.9% • Parent May Borrow Up To Cost Of Education • Loan Forgiven In Case Of Death Or Disability Of Parent Or Student • Awards If Approved Or Rejected • Delayed Repayment Options Offered

  26. PLUS Loan Credit Criteria • Bankruptcy (Chapters 7,11 or 12 Within Past 5 Years) Policy Does Not Consider Chapter 13 Adverse • Voluntary Surrender Within last 5 Years • Repossession Within Last 5 Years • Foreclosure Proceedings Started or Within Last 5 Years • Deed In Lieu of Foreclosure

  27. PLUS Loan Credit Criteria • Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) • Wage Garnishment Within Last 5 Years • Defaulted Loan That Has been Claimed Paid • Lease or Contract on Secured Real Estate • County/State/Federal Tax Lien Within Past 5 Years

  28. If PLUS Is Rejected • School Automatically Awards $4000 Stafford Unsubsidized Loan ($2000/semester) • If You Need More Than $4000 • File PLUS With An Endorser (www.studentloans.gov) • Remember if your PLUS is approved with the endorser, the added $4000 Stafford unsubsidized will be removed.

  29. Personal Identification Number (PIN) • Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) • Used To Sign FAFSA, MPN & Access Federal Sites • Can Request PIN Now • Name & SSN Must Match Social Security Card EXACTLY • Web: www.pin.ed.gov

  30. Personal Identification Number (PIN) • Must Be Used By Student & Parents Throughout Aid Process (Entire College Career) • Used To Sign FAFSA, MPN & Access Federal Sites • Can Request PIN Now • Web: www.pin.ed.gov

  31. FAFSA Overview • Available January 1, 2013 • Web: www.FAFSA.gov • Colleges May Set Filing Deadlines • Application For Pennsylvania State Grant (PHEAA) • Can Make Changes/Corrections Any Time • Don’t Be Late • Add Parent Email Address To FAFSA

  32. Common FAFSA Errors • SSN & Name Do Not Match Social Security Card • Missing Student Or Parent Signature (PIN) • Incorrect School Code • Drug Question Left Blank • Checking Legal Guardian • Missing Parent Data • “Do You Have A Degree?” ….No

  33. PLUS Loan Credit Criteria • Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) • Wage Garnishment Within Last 5 Years • Defaulted Loan That Has been Claimed Paid • Lease or Contract on Secured Real Estate • County/State/Federal Tax Lien Within Past 5 Years

  34. PLUS Loan Credit Criteria • Accounts Currently 90 Days or More Delinquent (Accounts Reported as 90 Days Delinquent Which Are Over 5 Years Old Since Last Reported Are Not Considered Adverse) • Wage Garnishment Within Last 5 Years • Defaulted Loan That Has been Claimed Paid • Lease or Contract on Secured Real Estate • County/State/Federal Tax Lien Within Past 5 Years

  35. Once FAFSA Is Processed • School Will Contact Student Showing Aid Package Or Instruction For Accessing Information • Remember You Can Not Compare Packages • Complete All School Requests ASAP

  36. Additional Details • Total COA = $14,086 $14,086 $28,172 • Total EFC = $1500 $1500 $3000 • Need = $12,586 $12586 $15,278 • Total Aid = $7639 $7639 $15,278 • Un-Meet Need = $4947 $4947 $9894 • EFC + Aid + Un-Meet Need = COA • $1500 + 7639 + 4947 = $14,086

  37. Financial Aid Overview • Using Billable Cost • Fall Spring Total • Billable Cost = $11,101 $11,101 $22,202 • Total Aid = $7639 $7639 $15,278 • Un-Meet Billable = $3462 $3462 $6924

  38. Bob Heyl Student Aid Officer Penn State Greater Allegheny rwh23@psu.edu

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